Reasons for the Tension between Capitalism and Democracy - Essay Example

Reasons for the tension between Capitalism and Democracy By (Name) The Name of the Class Professor The Name of the School Date Capitalism and Democracy The relationship that exists between capitalism and democracy has always been full of tension and contradictions. Capitalism and democracy are ideological pillars that are interrelated and have the capability of promoting freedom and prosperity in the societies of the world. Nevertheless, their twin interrelationship has not been realized in the recent decades in various nations of the world. Global capitalism has become triumphant, and it is thriving over democracy. Democracy has experienced underdevelopment. For example, previously, almost a third of the nations held fair and free elections; today, a less number does this. It is an indication that truly democracy has lost its real meaning. Also, it is true that countries governed by the ideologies of both capitalism and democracy are economically stable and more industrialized as seen in the United States of America and Canada. Despite this, there is still an existence of tension and contradictions between the duo capitalism and democracy. There are conflicts of interests between capitalists and democrats. The capitalists want a free market to enable them to do what they want while Democrats want to establish rights and freedom for every citizen in a nation. Wisdom holds it that where democracy or capitalism flourishes, one must automatically follow. However, the fortunes of the two ideologies are undergoing a divergence. Capitalism is thriving while democracy is undergoing struggles to keep up (Streeck, 2014). In light of the above, this paper seeks to provide reasons why there is tension between capitalism and democracy. Economic, political, and social forces are unleashed on democracy by capitalism. Though the duo capitalism and democracy have coexisted, the tension between them has not ended. The first difference or contradiction is related to the nature of their functions. Capitalism aims at producing a society that industrialized and economically stable (Kuhner, 2014). On the other hand, democracy deals with the creation of a society that provides equal rights and freedoms to individuals, so as to ensure that there is a peaceful and free coexistence of people in various societies of the world. There is a contradiction between the two ideologies because of the class structures in the society. The society is composed of two main classes, that is, the rich (owners) and the poor (workers) (Merkel, 2014). In regards to this, tension occurs because the capitalists want to establish a better market with good business strategies, but they must achieve this through their manipulation of the democratic structures of the society. Capitalism tends to recognize only one class, that is the wealthy while democracy recognizes both the rich and the poor classes in the society. Capitalism feels safe under the ruling of individuals who own capital in the society or those that identify themselves with the needs of the capitalists (Merkel, 2016). Whereas, on the contrary, democracy emphasizes on the rule provided by the majorities in the societies who do not identify themselves with the needs of capitalism do not possess capital (Scase, 2016). The tension caused by the differences in social structures is distributive. It is a conflict that exists between the concentration or the accumulation of wealth on the capitalists and also the demand attributed to the redistribution of capital or wealth on members of the society. Capitalists have always had a fear of poor majorities achieving power. Therefore, they prevented this through the use of the political power they acquired from the revolutions of the nineteenth century. Secondly, the tension between capitalism and democracy is attributed to the distribution of power. Capitalism seems to undermine the power required by democracy. The two ideologies have differences in the distribution of power (Merkel, 2014). In a democracy, power is distributed on the basis of citizenship while in capitalism; it is associated with property or wealth. The distribution of wealth based on the above factors brings a threat to the citizen participation in the society. Democracy emphasizes on a hierarchical and equal distribution of power (Ranciere, 2014). On the contrary, capitalism is characterized by an unclear distribution of power. Capitalism associates power with wealth because wealth is power. Therefore, those who have wealth possess power (Scase, 2016). The distribution of power interferes with the economic network of a nation, and as a result, it impacts on the political network. The differences in the distribution of power have led to the increasing tension and contradictions between capitalism and democracy. The clash in democratic and capitalist values is another cause of the tension that exists between capitalism and democracy (Crouch, 2016). Capitalism is based on its entrepreneurial culture that characterized by competition and survival of the fittest in the society. On the other hand, democracy involves inclusive values that involve all people in the society (Streeck, 2014). Liberal democracy should restrain some of the forces of the capitalists on citizens, and at the same time, it intends to legitimate capitalist relations. The state of welfare of a nation has been a contributing factor in the unequal distribution of wealth among individuals. The welfare state is a contributing factor to the current contradictions between capitalism and democracy. It enhances the differences not only through encouraging the participation of elites and neglecting inefficient markets, but also, it overlooks at the rights and morals of democracy such as social justice, equality in opportunities and participation, the right to privacy among others (Kuhner, 2014). Therefore, the differences in the values of democracy and capitalism contribute to the tensions and contradictions between the two ideologies and pillars of the economy of a nation. The contradictions that are currently witnessed between democracy and capitalism can as well be associated with the defined interests of each ideology. The priority of democracy is to achieve the interest of the public. On the other side, capitalism views the private interest as the right and the driving force behind the economic growth and development of a nation (Delanty, 2014). The role of the governments has also changed from protecting the public interests to that of safeguarding the private interests in the society. The public interests produce the highest demands, and the government should use this as a way of challenging the powers of capitalism over democracy. On the contrary, governments have now liberalized the market to accommodate private interest (Adelman & Fajardo, 2016). Private power has been liberalized outside the control of the government. Moreover, globalization has raised the power of private interests to overcome the public interests, making capitalism to overwhelm democracy (Crouch, 2016). As a resulting, it has caused and enhanced the tension between capitalism and democracy. The limitation of economic competitiveness is another contributing factor to the tension between capitalism and democracy in various nations. Based on this, democracy through the social dimension has resulted in some restrictions to capitalism. Both capitalism and democracy have failed to effectively achieve the balance in social cohesion and economic competitiveness (Delanty, 2014). Social cohesion and economic competitiveness are often affected by financial crisis, and this may reduce the democratic rights of individuals because of the effects on social cohesion caused by the imbalance. The economic debts and its effects on autonomous decision-making are also a reason for the contradictions that are experienced between capitalism and democracy. People can acquire wealth through getting debts from those who have wealth in the society. Capitalism allows for debts. It is a necessity for investments for some people. Entrepreneurial capitalism is attained through investments (Adelman & Fajardo, 2016). Acquiring debts enables others to accomplish various things. However, debt makes the lenders to attain a higher economic status over others especially those who seek the debts (Przeworski, 2014). A lender acquires capitalist power over the debtor until he or she can pay back. As a result, wealthy members from various states may interfere with the internal affairs of debtor nations. Debts result in the limitations on the process of the decision-making process of debtor nations, hence causing further tension between capitalism and democracy because of the realized effects. The contradictions between capitalism and democracy are also caused by the demands of citizens of a nation and the capital demands (Scase, 2016). Finding solutions towards these demands continue to confer more power on capitalism than democracy. For instance, the struggle to find solutions to inflation in a nation overpowers capitalism in providing attempts to find more capital to solve the problems. The emphasis put on capitalism undermines the strength of democracy, thereby causing further contradictions between capitalism and democracy. To conclude, capitalism and democracy are considered to be two interrelated ideological pillars that are critical in shaping the growth and development of a nation. They are meant to bring prosperity and freedom to a nation. Today, there is an increased divergence between the two ideologies. It is noted that capitalism slowly and gradually killing democracy. Capitalism focuses on bring industrialization and economic development to a nation. On the contrary, democracy aims at establishing equal rights and freedom to every citizen of a nation. These differences have resulted in increased tension between the two ideologies. Other factors include the differences in social structures, the distribution of power, the differences in the values of capitalism and democracy, the debt and autonomous decision-making, limitations to economic competencies among much more. These have enhanced the contradictions between capitalism and democracy. References Adelman, J. and Fajardo, M. (2016). Between Capitalism and Democracy: A Study in the Political Economy of Ideas in Latin America, 1968–1980. Latin American Research Review, 51(3), pp.3-22. Crouch, C. (2016). Capitalism, inequality and democracy. Stato e mercato, 36(2), pp.159-182. Delanty, G. (2014). Europe’s nemesis?: European integration and contradictions of capitalism and democracy. Kuhner, T. (2014). Capitalism v. democracy: Money in politics and the free market constitution. Stanford University Press. Merkel, W. (2016). The challenge of capitalism to democracy. Zeitschrift für Vergleichende Politikwissenschaft, 10(1), pp.61-80. Merkel, W.(2014). Is capitalism compatible with democracy?. Zeitschrift für Vergleichende Politikwissenschaft, 8(2), pp.109-128. Przeworski, A. (2014). The state and the economy under capitalism. Routledge. Rancière, J.(2014). Hatred of democracy. Verso Books. Scase, R. (2016). Social democracy in capitalist society: working-class politics in Britain and Sweden. Routledge. Streeck, W., 2014. Buying time: The delayed crisis of democratic capitalism. Verso Books. Read More

Capitalists have always had a fear of poor majorities achieving power. Therefore, they prevented this through the use of the political power they acquired from the revolutions of the nineteenth century. Secondly, the tension between capitalism and democracy is attributed to the distribution of power. Capitalism seems to undermine the power required by democracy. The two ideologies have differences in the distribution of power (Merkel, 2014). In a democracy, power is distributed on the basis of citizenship while in capitalism; it is associated with property or wealth.

The distribution of wealth based on the above factors brings a threat to the citizen participation in the society. Democracy emphasizes on a hierarchical and equal distribution of power (Ranciere, 2014). On the contrary, capitalism is characterized by an unclear distribution of power. Capitalism associates power with wealth because wealth is power. Therefore, those who have wealth possess power (Scase, 2016). The distribution of power interferes with the economic network of a nation, and as a result, it impacts on the political network.

The differences in the distribution of power have led to the increasing tension and contradictions between capitalism and democracy. The clash in democratic and capitalist values is another cause of the tension that exists between capitalism and democracy (Crouch, 2016). Capitalism is based on its entrepreneurial culture that characterized by competition and survival of the fittest in the society. On the other hand, democracy involves inclusive values that involve all people in the society (Streeck, 2014).

Liberal democracy should restrain some of the forces of the capitalists on citizens, and at the same time, it intends to legitimate capitalist relations. The state of welfare of a nation has been a contributing factor in the unequal distribution of wealth among individuals. The welfare state is a contributing factor to the current contradictions between capitalism and democracy. It enhances the differences not only through encouraging the participation of elites and neglecting inefficient markets, but also, it overlooks at the rights and morals of democracy such as social justice, equality in opportunities and participation, the right to privacy among others (Kuhner, 2014).

Therefore, the differences in the values of democracy and capitalism contribute to the tensions and contradictions between the two ideologies and pillars of the economy of a nation. The contradictions that are currently witnessed between democracy and capitalism can as well be associated with the defined interests of each ideology. The priority of democracy is to achieve the interest of the public. On the other side, capitalism views the private interest as the right and the driving force behind the economic growth and development of a nation (Delanty, 2014).

The role of the governments has also changed from protecting the public interests to that of safeguarding the private interests in the society. The public interests produce the highest demands, and the government should use this as a way of challenging the powers of capitalism over democracy. On the contrary, governments have now liberalized the market to accommodate private interest (Adelman & Fajardo, 2016). Private power has been liberalized outside the control of the government. Moreover, globalization has raised the power of private interests to overcome the public interests, making capitalism to overwhelm democracy (Crouch, 2016).

As a resulting, it has caused and enhanced the tension between capitalism and democracy. The limitation of economic competitiveness is another contributing factor to the tension between capitalism and democracy in various nations. Based on this, democracy through the social dimension has resulted in some restrictions to capitalism. Both capitalism and democracy have failed to effectively achieve the balance in social cohesion and economic competitiveness (Delanty, 2014). Social cohesion and economic competitiveness are often affected by financial crisis, and this may reduce the democratic rights of individuals because of the effects on social cohesion caused by the imbalance.

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